Measures how fast price has risen or fallen recently, on a 0–100 scale. Above 70 is often 'overbought' (stretched), below 30 'oversold'. It describes stretch, not direction — stretched stocks can stay stretched.
Above 70: the rise has been unusually fast (overbought). Below 30: unusually fast fall (oversold). 40–60 is neutral. In strong uptrends RSI often lives at 55–75 for weeks.
A stretch gauge, not a direction signal — overbought stocks can keep rising. Works worst in strong one-way trends.
A stock rallies 12% in a week and RSI prints 78: the move is stretched — a pause or pullback is common, but not guaranteed.
See it on a chart (Overview)All terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.